UPMC CFO: Hiring growth to slow in Pittsburgh

Expenses at hospital giant UPMC are growing faster than revenue, an unsustainable path that officials said on Thursday they are working to change.

UPMC, the Pittsburgh-region's largest employer, is making money. But to prevent further financial losses, the 19-hospital health system is taking action now, tamping down hiring in administrative jobs, UPMC Chief Financial Officer Robert DeMichiei said.

Health care jobs have been a primary driver of Western Pennsylvania's economy for many years, said Frank Gamrat, economist for the Allegheny Institute for Public Policy, a Castle Shannon think tank.

"That's been the one bright spot around here," Gamrat said. "To hear that they're (UPMC) going to slow down hiring is certainly going to take a bite out of job growth around here."

In the last several years, UPMC has added a net 2,000 to 2,500 new jobs a year, DeMichiei said.